VA awards $27.8M for networking hardware and software, with 3 offers received

Contract Overview

Contract Amount: $27,791,504 ($27.8M)

Contractor: ALL Points Logistics, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-09-28

End Date: 2016-04-28

Contract Duration: 578 days

Daily Burn Rate: $48.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMMODITIES ENTERPRISE CONTRACT DELIVERY ORDER - PROCUREMENT OF NETWORKING APPLIANCES, INCIDENTAL SOFTWARE, INCIDENTAL HARDWARE, AND WARRANTIES FOR THE DEPARTMENT OF VETERANS AFFAIRS, ENTERPRISE VOICE SOLUTIONS WIDE AREA NETWROK AND LOCAL AREA NETWORK CORE SITE READINESS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27.8 million to ALL POINTS LOGISTICS, LLC for work described as: COMMODITIES ENTERPRISE CONTRACT DELIVERY ORDER - PROCUREMENT OF NETWORKING APPLIANCES, INCIDENTAL SOFTWARE, INCIDENTAL HARDWARE, AND WARRANTIES FOR THE DEPARTMENT OF VETERANS AFFAIRS, ENTERPRISE VOICE SOLUTIONS WIDE AREA NETWROK AND LOCAL AREA NETWORK CORE SITE READINESS Key points: 1. The contract value of $27.8M represents a significant investment in the VA's IT infrastructure. 2. Competition was robust, with 3 offers received, suggesting a healthy market for these services. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 4. Performance is scheduled over a 578-day period, indicating a medium-term project. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract was awarded under full and open competition after exclusion of sources, a standard procurement method.

Value Assessment

Rating: good

The total contract value of $27.8M for networking appliances, software, and warranties appears reasonable given the scope. While direct comparisons are difficult without specific product details, the number of bidders (3) suggests competitive pricing was likely achieved. The firm-fixed-price structure provides cost certainty. The duration of 578 days for delivery and implementation is also within a typical range for such IT infrastructure projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. The receipt of three bids suggests a competitive environment, which generally leads to better price discovery and value for the government. The exclusion of sources clause might indicate specific technical requirements that narrowed the field slightly, but the overall competition level is positive.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down prices and ensured the VA received the best possible value for its investment in networking technology.

Public Impact

Veterans will benefit from improved network performance and reliability within the Department of Veterans Affairs. The contract delivers essential networking hardware, software, and warranties to support VA's IT infrastructure. The geographic impact is nationwide, supporting the VA's enterprise voice solutions and core network sites. This contract supports the IT workforce involved in the deployment, maintenance, and management of networking equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary hardware is selected.
Risk of scope creep if incidental software/hardware needs expand beyond initial requirements.
Dependence on the contractor for timely delivery and successful integration of complex networking components.

Positive Signals

Firm-fixed-price contract limits financial risk for the government.
Full and open competition generally leads to better pricing and quality.
Clear delivery and performance periods provide a defined timeline for project completion.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on network infrastructure. The market for networking appliances, software, and related services is large and competitive, with numerous vendors offering solutions. The VA's spending on such equipment is consistent with the needs of large federal agencies requiring robust and secure communication networks. Comparable spending benchmarks would typically be found within IT procurement data for similar agencies or large enterprise network upgrades.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. Given the nature of enterprise-level networking solutions, it is possible that larger, established vendors were the primary bidders. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors or if specific set-asides were considered and excluded.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods and services by a certain date. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Enterprise Voice Solutions
VA Wide Area Network (WAN) Infrastructure
VA Local Area Network (LAN) Core Site Readiness
Federal IT Procurement
Networking Hardware and Software Purchases

Risk Flags

Potential for vendor lock-in
Risk of integration challenges
Cybersecurity vulnerabilities
Technological obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27.8 million to ALL POINTS LOGISTICS, LLC. COMMODITIES ENTERPRISE CONTRACT DELIVERY ORDER - PROCUREMENT OF NETWORKING APPLIANCES, INCIDENTAL SOFTWARE, INCIDENTAL HARDWARE, AND WARRANTIES FOR THE DEPARTMENT OF VETERANS AFFAIRS, ENTERPRISE VOICE SOLUTIONS WIDE AREA NETWROK AND LOCAL AREA NETWORK CORE SITE READINESS

Who is the contractor on this award?

The obligated recipient is ALL POINTS LOGISTICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2014-09-28. End: 2016-04-28.

What is the track record of ALL POINTS LOGISTICS, LLC with the Department of Veterans Affairs and similar federal contracts?

A review of federal procurement data indicates that ALL POINTS LOGISTICS, LLC has received multiple awards from the Department of Veterans Affairs and other federal agencies. Their contract history includes various IT services, logistics support, and equipment procurement. For this specific contract, the company was responsible for delivering networking appliances, software, and warranties. Analyzing their past performance on similar IT infrastructure projects, particularly those involving network upgrades or deployments for large government entities, would provide further insight into their capabilities and reliability. It's important to examine metrics such as on-time delivery, adherence to technical specifications, and overall customer satisfaction from previous engagements to assess their track record comprehensively.

How does the awarded price of $27.8M compare to similar networking appliance procurements by other federal agencies?

Benchmarking the $27.8M award requires detailed comparison with contracts for similar networking appliances, software, and warranties procured by other federal agencies around the same timeframe (2014-2016). Factors such as the specific types and quantities of appliances, the complexity of the software, the duration of warranties, and the scope of incidental hardware and services are crucial. Without this granular data, a direct price comparison is challenging. However, given that this was a full and open competition with three bidders, it suggests that the price was likely competitive within the market at that time. Agencies often leverage purchasing power through large-scale contracts or government-wide acquisition contracts (GWACs) to achieve better rates, so comparing against such vehicles could offer a broader perspective on value.

What are the primary risks associated with the procurement of networking appliances and software for a large federal agency like the VA?

Key risks in procuring networking appliances and software for a large agency like the VA include technological obsolescence, as hardware and software can quickly become outdated. Integration challenges pose another significant risk, ensuring new equipment seamlessly works with existing infrastructure. Cybersecurity vulnerabilities are paramount; any lapse in security could have severe consequences. Vendor lock-in is also a concern, where reliance on proprietary technology limits future flexibility and increases costs. Furthermore, performance and reliability risks exist, as network downtime can disrupt critical government operations. Finally, cost overruns, though mitigated by a firm-fixed-price contract, can still occur if scope is not well-defined or unforeseen technical issues arise.

How effective are firm-fixed-price contracts in managing costs for IT infrastructure procurements of this scale?

Firm-fixed-price (FFP) contracts are generally considered effective in managing costs for IT infrastructure procurements, especially when the scope of work is well-defined. Under an FFP contract, the contractor assumes most of the risk for cost overruns, providing the government with cost certainty. This structure incentivizes the contractor to control costs and manage resources efficiently to maximize profit. For a procurement like this, involving networking appliances and software, an FFP contract helps prevent unexpected increases in the total expenditure. However, the effectiveness relies heavily on the clarity and completeness of the contract's specifications and requirements. If the scope is ambiguous or changes frequently, it can lead to disputes or costly change orders, diminishing the cost-control benefits.

What does the 'full and open competition after exclusion of sources' clause imply for the procurement process and potential bidders?

The 'full and open competition after exclusion of sources' clause indicates that while the procurement was intended to be competitive, certain sources were excluded from the outset. This exclusion is typically based on specific, justifiable reasons, such as unique capabilities, proprietary technology, or prior development efforts by a particular entity. It means that the solicitation was made available to all responsible sources *except* those excluded. The implication is that the agency had a rationale for limiting the pool of potential bidders, which could potentially reduce the number of offers received compared to a purely 'full and open' competition. However, the remaining competition among the eligible sources is still expected to yield fair and reasonable pricing.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5000 BRADFORD DRIVE SUITE 3B, HUNTSVILLE, AL, 05

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $27,791,504

Exercised Options: $27,791,504

Current Obligation: $27,791,504

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11813D1003

IDV Type: IDC

Timeline